Brendan Bussmann, founder of the B Global consultancy, gave one of his periodic legislative updates Wednesday. It came at the tail end of a lengthy investor note from Truist Securities analyst Barry Jonas.
Confining his focus to three states this time, Bussmann began with some recent political contretemps over taxes and sports betting in Nebraska. Although high property taxes (among the steepest in the nation, according to Bussmann) prompted Gov. Jim Pillen to propose a gambling-related fix, legislators were not receptive.
Considered but rejected was a Pillen-proposed exponential increase in the tax on “skill games.” The governor wanted to raise the levy on these slot-like devices to 20 percent. However, lawmakers stuck with the current five percent impost.
Cornhusker State solons mulled at least five other gambling pitches, including an introduction of online sports betting (OSB), a revision of existing sports-betting law to allow wagering on Nebraska-based teams, and fantasy sports betting.
None of these advanced far, although a constitutional amendment to permit OSB moved out of committee on a 5-3 vote. But once it got to the floor, “no other action was taken and it was dead on arrival.”
Sports betting continues to hang fire in Missouri, where a constitutional question that would bring it into being is tied up in litigation at present. The Missouri secretary of state certified the proposed amendment as having enough signatures to make the November ballot, but two political consultants have been challenging its constitutionality.
As Bussmann noted, attempts to move sports betting forward through the legislature repeatedly failed, as the issue was “held hostage” by state Sen. Denny Hoskins. He sought a legislative quid pro quo whereby controversial gray-market slots would be legalized, the price for sports betting legitimization.
“Polling from earlier this summer saw the measure was tight with a slight edge to passage,” Bussmann reported. “However, this was done before any campaigns for or against had started and arguable in a different political climate with all of the recent national changes to the ballot.” The last phrase was an allusion to the withdrawal from contention of President Joe Biden and unaffiliated challenger Robert F. Kennedy and the emergence of Vice President Kamala Harris as a presidential contender.
Should the courts green-light the sports betting amendment, Bussmann opined, “The issue will have a quick sprint to convince the voters this November.” Its backers include professional sports teams in the Show Me State, as well as FanDuel and DraftKings. The latter duo has chipped in $10 million toward the advocacy campaign.
One other state where progress for the gaming industry is possible is Louisiana. Pelican State politicians are awaiting the outcome of SR149, which commissioned a thorough study of the issue of igaming.
Concluded Bussmann, “As the fall unfolds, the study will give a better picture of where igaming stands in Louisiana and capturing revenue from customers that currently do not game in this way, as well as offering alternatives for those that already participate in gaming in Louisiana.”
